Believe it or not, but I did use an SM57 for the whole kit. I placed it about a meter (three feet) away from the kit, to the height of the kick drum's top edge, facing towards the snare drum and the kick's hoop. I have spent a few moments figuring out the best placement for a single mic, and during the years of experimenting this position has proven to be the best option. The mic's pick-up pattern isn't too tight from that distance, and it records everything very nicely -- that is, if your kit balance is OK.

I think the hole in the side of the bass drum looks cool and is functional. Certainly, it can't be worse then boring a hole in the bass drum and then bolting 25 pounds of hardware onto it. It also allows you to have an intact reso head and the richer sound that provides.